Short-term rentals in Sandpoint, explained properly.

Sandpoint City Code 3-12-2(D) says that within residential zones short-term rentals shall have a minimum two (2) nights' stay. Idaho Code 67-6539(2)(a)(xi) lists imposing a limit on the days a property can be rented among the requirements a city may not impose on short-term rentals, and the City says it no longer administers the chapter's permit program from July 1, 2026. The sources do not say whether the City still applies the two-night minimum, so the rule is left under review.

Sandpoint City Code 3-12-2(D) says all STRs in residential zones shall be limited to one (1) per parcel. Idaho Code 67-6539(2)(a)(xvi) lists restricting the number of short-term rentals in a county or city among the requirements a city may not impose, and the City says it no longer administers the chapter's permit program from July 1, 2026. The sources do not say how the City now treats the one-per-parcel limit, so the rule is left under review.

Sandpoint City Code 3-12-5 requires operable bedroom egress windows, smoke alarms in each room used for sleeping, outside sleeping areas and on each story, a carbon monoxide detector on each floor if there is a garage, solid fuel appliance or gas appliance, and one 2A:10BC fire extinguisher per floor mounted between 3 and 5 feet above the floor. A standard short-term rental holds no more than two persons per bedroom plus two, up to 10 persons, and a high-occupancy permit is needed above that in residential zones. No recreational vehicle, travel trailer or tent may be used as a short-term rental. Idaho Code 67-6539(3) lets a city require, by ordinance, only a short list of safety items: smoke alarms in sleeping areas, a fire extinguisher and carbon monoxide detector on each floor, removable escape ladders for upper-floor sleeping areas, occupancy limits no higher than the building code's non-transient residential limits, and an exit and emergency-contact handout. Which of the chapter's standards the City still applies was not stated in the sources.

Sandpoint City Code 3-12-5 says each short-term rental shall list a local representative who permanently resides within twenty (20) vehicular miles of Sandpoint city limits; in residential zones owners and residents within 200 feet must be given the name and phone number of the owner or representative; the permit is posted next to the front door; and off-street parking is required, one space for standard STRs advertising five or fewer guests and two spaces for six or more (on-street parking does not count). Idaho Code 67-6539(2)(a) lists requiring professional property management, additional parking, signage or notices and notices to neighboring properties among the requirements a city may not impose on short-term rentals. The sources do not say which of these the City still applies, so the rule is left under review.

The City's pages say short-term lodging in Sandpoint, including short-term rentals of dwelling units, is subject to the City's 14% local option short-term rental occupancy tax under Sandpoint City Code Title 3, Chapter 10, for lodging rented for 30 days or fewer. The tax is calculated on the total short-term occupancy charge and collected from the guest. Voters approved raising the resort city tax from 7% to 14% effective January 1, 2023, and extended it through December 31, 2035. Returns and payments are generally due monthly on or before the 20th of the month after collection; a taxpayer with a quarterly or annual Idaho schedule can request the same schedule. A return is filed for every period even when no tax is due, with copies of the Idaho Sales and Use Tax Return and Travel and Convention Tax Return. Records are kept at least four years. The initial late-payment penalty is the greater of 5% of the unpaid tax or $10. When a marketplace such as Airbnb or Vrbo is used, the owner should confirm whether it collects and remits the City tax and remains responsible for direct bookings. Chapter 10 itself was not read, and no combined tax total is given here because the sources do not state how the City, state sales and travel and convention taxes stack.

The City's Short Term Rental page says STR owners and operators must obtain a Short-Term Rental Occupancy Tax Permit from the City for each applicable lodging location. This tax permit is separate from any land-use or STR operating permit and remains required even though the City no longer administers a general STR permit program. The permit must be displayed at the location and its number used on tax filings, payments and correspondence. The City's Resort City Tax page links an application form and a remittance form; registration and forms go through the Finance Department. Chapter 3-12-2(C) of the code also requires compliance with the occupancy tax chapter.

Idaho Code section 67-6539, as amended by House Bill 583 (2026 Session Law chapter 22, in force July 1, 2026), says no county or city may enact or enforce an ordinance that has the express or practical effect of prohibiting any type of short-term rental, and no county or city may require a license, fee, permit, certification or registration to operate one. Local rules for health and safety may not put different restrictions or obligations on short-term rentals than on similar homes that are not rented short term. The statute lists examples that cities and counties may not impose, including owner occupancy for any amount of time, professional management, extra insurance, inspections, limits on the days a property can be rented, notices to neighbors, a conditional use permit in a residential zone, spacing from other short-term rentals and caps on their number. By ordinance a county or city may require only: smoke alarms in all sleeping areas; a fire extinguisher and a carbon monoxide detector on each floor; removable escape ladders in sleeping areas with a window above the ground floor; occupancy limits no stricter than the non-transient residential limits in the building codes adopted by the Idaho building code board; and an easily accessible handout showing exits, fire extinguishers, any first aid kits and an emergency phone number for the owner or manager. A short-term rental is classed as a non-transient residential use for zoning and building codes, and owners and guests remain subject to the noise, parking, nuisance, curfew and traffic rules that apply to other homes. Idaho Code section 63-1803 defines a short-term or vacation rental as a single-family house or dwelling unit, a condominium, cooperative or timeshare unit, or an owner-occupied home offered for a fee for 30 days or less.

The Idaho State Tax Commission lists the state sales tax rate as 6% and counts short-term rental accommodations for 30 days or less among taxable retail sales. Its lodging guide says Idaho sales tax is due on vacation homes and private residences rented for 30 days or less, and that these lodging taxes apply only to rentals of 30 days or less.

Idaho charges a travel and convention tax to occupants of hotel and motel rooms for stays of 30 days or less, and the Tax Commission says it also applies to vacation-home rentals. It does not apply to someone who stays more than 30 days continuously in the same room or space. The current rate is 2%. The Tax Commission's lodging guide lists the tax as due on vacation homes and private residences, alongside Idaho sales tax. Returns are filed on Form 1152 in the Tax Commission's online system (TAP).

The Tax Commission says that to offer short-term lodging you need a travel and convention tax permit, a regular seller's permit and, if the rental is in an auditorium district, an auditorium district tax permit, applied for through the Idaho Business Registration (IBR); permits arrive in about 10 days. You technically don't need these permits if you rent only through short-term rental marketplaces that collect and send in the taxes for you, but you must get them if you rent the lodging any other way or charge for services or fees on which the marketplace does not collect tax. These are state tax permits, not a local license to operate.

Idaho Code section 63-1804 requires a short-term rental marketplace to register with the State Tax Commission to collect, report and pay Idaho sales and use and travel and convention taxes, and any local taxes the Tax Commission administers, on the stays it facilitates, and to collect, report and pay taxes imposed by any local government on the operator or guest. Since July 1, 2026 (House Bill 583), an owner who offers a short-term rental directly to a guest without a marketplace must comply with the same requirements. The Tax Commission says marketplaces are responsible for collecting all taxes due on the lodging they arrange, lodging providers are responsible for the taxes on stays they arrange directly, and hosts should not report sales or tax that a registered marketplace already reports.